The higher the yield, the higher the risk. A high yield is designed to attract investors. An outrageously high yield attracts fools.

Bet on black. Buy low-debt or no-debt companies. When the economy is in trouble, these companies usually have enough cash on hand to stay out of trouble. And they seldom need to borrow when interest rates are high.

The higher the yield, the higher the risk. A high yield is designed to attract investors. An outrageously high yield attracts fools.

Give a cold shoulder to cold callers. Never invest in anything based on a phone call from someone you don't know or whose office is a post office box.

Invest in vanity. Buy stocks in high-profile companies whose products are designed to make you feel good and look good.

Always leave a sinking ship. There's no virtue in hanging on to losers. And stocks don't have feelings.

When a corporation goes into the marketplace to buy back its own stock, it means management thinks the stock is undervalued. This is a smart time to buy.